Australia’s first crypto exchange-traded funds began trading on Thursday amid the digital currency crisis.
Australia’s first crypto exchange-traded funds began trading on Thursday amid a downturn in digital tokens. ETFS 21Shares Bitcoin ETF, ETFS 21Shares Ethereum ETF and Cosmos Purpose Bitcoin Access ETF have launched on the local exchange of Cboe Global Markets Inc. after the deployment was delayed.
The ETFS portfolios will invest directly in cryptocurrencies, while the Cosmos vehicle will invest in the Purpose Bitcoin ETF, a Toronto-listed fund with approximately $1.4 billion Canadian ($1.1 billion) in assets. US dollars).
The funds are launching as the crypto sector reels from the unraveling of a popular stablecoin known as TerraUSD. A global wave of monetary tightening is also eroding liquidity and dampening speculation.
Stablecoins are a key element of the plumbing in the crypto market, where traders move funds as they move in and out of other tokens. TerraUSD was supposed to have a stable value at $1 but the price peg has frayed, creating a disturbance in the digital token market.
Bitcoin is down 39% this year, while Ether is down 46%. The erratic swings that are common in the crypto market and the latest swing may ignite the appetite of some to bet on a recovery.
Trading volume of Australia’s first crypto ETFS surpassed A$1 million just two hours after the opening bell. According to Bloomberg analysts Rebecca Sin and James Seyffart, this marks a strong start for the country, as its entire ETF market is just AU$152 billion compared with $6.3 trillion dollars, according to Bloomberg analysts Rebecca Sin and James Seyffart.
“The crypto launch of ETF Securities and Cosmos Asset Management could go down in history and bring the Australian ETF market to life,” they wrote in a report. According to some predictions, Australia’s crypto market could hit $1 billion by the end of the year, and the country could also serve as an Asia-Pacific gateway for crypto ETFs, added analysts.
Bitcoin was up about 0.5% to $28,550 at 11:32 a.m. in Hong Kong, while Ether was down 1% at $2,015.
